For more information, please visit http://jobs.utah.gov

1. Perspectives on Utah’s Economy
Winter 2012/2013
Looking
Forward
to 2013
Economic
Improvement Will
Likely Continue
NATIONAL utah's economy
Housing Market HOW DID IT FARE IN 2012?
Staging a
Comeback
Construction Jobs
Rebounding
Manufacturing
Employment
Improving
Department of Workforce Services

2. Hiring Our Heroes! Trendlines
Successful hiring Utah Department of Workforce Services
Executive Director
event showcases Utah Jon Pierpont
veterans Workforce Research and Analysis
Jon Pierpont, Executive Director, Rick Little, Director
Department of Workforce Services Carrie Mayne, Supervising Economist
Contributors
D ear Readers:
At DWS, it is a top priority
to connect service men and women to
providing "Priority of Service" to all
Utah veterans. We also provide:
Mark Knold
Lecia Parks Langston
Natalie Torosyan
Utah jobs, including active members Jim Robson
of the National Guard and Reserve • Information on transferring
and their eligible spouses. Recently, military skills to civilian education Nate Talley
a military hiring event for our and licensing credits John Krantz
veteran heroes was held at the South • Utah's largest online employment Eric Martinson
Towne Expo Center in Sandy. I'm system for finding a job
MeLauni Jensen
happy to report that we connected • Referrals to employment
144 employers with 837 job workshops and temporary Editor
seekers from the local military assistance programs Kathy Hopkinson
population.
• Work readiness activities
Ongoing surveys will be conducted for Designer
• Networking opportunities
those who attended so that we might Pat Swenson
continually improve our services to Looking ahead to 2013, we will
veterans and to track the total number
of jobs offered.
continue to improve our services
and highlight our commitment to jobs.utah.gov
veterans. For more information, visit
If you are a veteran or know a veteran, our web site at jobs.utah.gov/veterans.
please help spread the word about
our services. We are committed to Sincerely,
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The Workforce Research and Analysis
Division generates accurate, timely and
understandable data and analyses to provide
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and decision-making.
2 Winter 2012/2013

3. Perspectives on Utah’s Economy
LOOKING
FORWARD
TO 2013
Winter 2012/2013
Economic
contents
Improvement Will
Employment Profile by County
Likely Continue
4 Wasatch Front and Statewide
NATIONAL
UTAH'S ECONOMY
Housing Market HOW DID IT FARE IN 2012?
Staging a
Comeback
Looking Ahead for Utah's Economy
6
Construction Jobs
Rebounding
Manufacturing
Employment
Improving Department of Workforce Services
Economic News
Modest Financial Activities Job Growth
A Look Forward 8 Insider News
and Back This New House: National Housing
10 Market Staging a Comeback
National News
Construction Jobs Rebounding
12 The Outlook
pg. 14
Dig This
14 What's Happening
Manufacturing Employment
16 in Utah Improving
Economic Insight
Industry Clusters and the North
18 American Industry Classification System
FYI
Off the Front: Forecasting Leisure/
20 Hospitality Services Employment
The Outskirts
pg. 16 Roustabout
22 Occupations
Celebrating 14 Years of Work/Life Awards
24 DWS News
Mining
26 Industry Highlight
Equal Opportunity Employer/Program
Auxiliary aids and services are available upon request
to individuals with disabilities by calling
Just the Facts...
801-526-9240. Individuals with speech and/or hearing
impairments may call the Relay Utah by 27 Rate Update
dialing 711. Spanish Relay Utah: 1-888-346-3162.
jobs.utah.gov/wi Trendlines 3

4. wasatch front and statewide | by mark knold, chief economist
Employment Profile by County
U
tah’s employment base is expanding, growing gas production. Utah’s hardest hit county during the
in the 3.5-percent range. All industrial sectors recession, Washington, is finally seeing a bounce back
are adding jobs again in Utah except for the and looking like its old self again with growth over 4.0
federal government. percent. Most metro counties are doing well. Emery
When you look at Utah from a county level, it is more County’s big job loss is the reflection of temporary
of a mixed bag. Most have growth, but some do not. power plant maintenance projects last year having been
The best growth is in the two major counties of the completed. These varying county economies paint a
Uintah Basin (Duchesne and Uintah), fueled by oil and generally optimistic picture for Utah.
4 Winter 2012/2013

5. Employment Growth Rate by County
October 2011–2012
10%
8%
6%
Metropolitan Counties
4%
2%
Daggett
Garfield
Carbon
Beaver
Wayne
Emery
0%
Uintah
Wasatch
Morgan
San Juan
Tooele
Washington
Sevier
Juab
Summit
Utah
Salt Lake
Iron
Piute
Davis
Cache
Box Elder
Kane
Millard
Duchesne
Rich
Sanpete
Weber
Grand
-2%
-4%
-6%
-8%
-10%
Source: Utah Department of Workforce Services forecast.
jobs.utah.gov/wi Trendlines 5

6. economic news | by mark knold, chief economist
Looking
ahead for utah's economy
T he Utah economy
comparatively well in 2012.
did
Yes, we are still being impacted
by the broad shadow of the
Great Recession, but the
economy began making aggressive
progress beyond that shadow in 2012.
The recession’s cloud spread from
2008 through 2011. Employment
losses had accumulated through
2010, followed by a middling Utah
employment expansion beginning in
2011. In 2012 it rose above mediocre,
as employment gains moved above
3.0 percent. The change is that
jobs increased in 2012 (projected at
40,200) faster than the 2012 labor
force growth (new labor force growth
in Utah usually runs around 20,000
to 25,000 per year). This was the first
year since 2007 that the economy
outpaced new labor force growth. We
created more jobs than the number
of new workers.
2012 was the first year the economy
began to reach back into the
recession shortfall and re-employ
people. By the end of 2012, Utah
had as many jobs as it did before the
recession. The deficit that remains is
about 100,000 fewer jobs than what
otherwise would have developed
had the economy kept up with labor
force growth. Therefore, we still have
relatively high unemployment and
remain in the recession’s shadow.
When 2012 final job counts are in,
the Utah economy will probably
have grown around 3.3 percent,
or 40,200 jobs. Projections show
6 Winter 2012/2013

7. that 2013 will largely be a repeat
performance with growth around
3.2 percent, or another 40,000 jobs.
If those numbers aren’t accurate,
it will probably be on account of a
BY THE END of 2012, Utah
better economic performance than had as many jobs as it did
anticipated, not worse.
The Utah economy will still lag
before the recession.
behind accumulated labor force
growth for quite some time.
Depending on the pace of job
growth, it could take five to eight
more years for Utah to employ utah
EMPLOYMENT*
its internal labor force growth
that otherwise would have been
employed had we not gone through
the Great Recession.
Employment
2000–2013f
There is a potential revolutionary (thousands)
economic transformation underway 1,320
in America that could help Utah
move more rapidly toward closing
this employment gap. It is the shale 1,270 Previous Peak Employment
gas boom that has emerged across
the country over the past five years.
This is not likely to fade anytime 1,220
soon. Shale rock formations are
giving America cheaper, abundant
and comparatively clean energy. 1,170
Because of this, America’s industrial
base could surge, particularly in
industries that were fading — 1,120
namely manufacturing.
This energy boom is expected to be 1,070
a major spur to the United States’
economy. Citigroup has estimated
that the payoff for America over the 1,020
next decade may be 3.6 million new
jobs. Utah has generally enjoyed
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
a position where it performs
parallel with yet better than the
national economy. Therefore, if Source: U.S. Bureau of Labor Statistics; November 2012.
f = forecast; Utah Department of Workforce Services.
this revolution is going to spur the * = Seasonally Adjusted
national economy to new heights,
then it stands to reason it will also
spur the Utah economy onto a
stronger and more rapidly repairing
path as this decade progresses.
jobs.utah.gov/wi Trendlines 7

8. insider news | by jim robson, economist
Total 2013 financial activities
employment will likely average about
71,000, with the largest increases
occurring within securities/trusts/other
finance and in real estate.
Modest Financial Activities Job Growth
I n addition to the construction industry,
another major industry sector at the
center of the housing boom and bust,
with the subsequent financial meltdown
and the Great Recession, was financial
increased its share of financial activities
employment by 2.1 percentage points,
from 14.8 percent to 16.9 percent. Real
estate jobs had increased from an average
of 9,350 in 2002 to average 12,600 in 2007,
activities. Banks, credit unions and other an increase of 34.9 percent.
financing businesses, along with real estate
agents, brokers and related activities are The housing bust and Great Recession took
within the financial activities industry a significant toll on financial activities with
group. annual average employment reaching a
low of 68,000 in 2010, a drop of 9.0 percent
Over the past ten years, there was a from 2007. Real estate employment has
significant increase in financial activities declined by a somewhat smaller amount
jobs. Included within the decade was by 8.3 percent. By 2012, some recovery
the housing boom that ended in 2007, a of financial activities jobs has occurred
rather dramatic drop of employment as with average employment estimated to be
a result of the 2008/2009 recession and about 69,400. Figure 1 shows the structural
renewed job growth since 2010. In 2002 changes that have occurred within financial
total employment in the industry stood activities by 2012 compared to 2007. Real
at 63,300, comprising about 5.4 percent of estate has actually gained an additional
all payroll jobs in Utah. With the housing 0.5 percent share of employment within
boom and hot economy, financial activities the industry, with the largest increase in
employment reached a peak annual job share accruing to securities/trusts/
average of 74,700 in 2007, accounting for other finance, increasing to 11.0 percent
6.0 percent of payroll jobs in the state. Over compared to 9.3 percent in 2007.
this five-year period, jobs were growing at
3.6 percent per year compared to overall The 2013 outlook for financial activities
Utah payroll job growth of 3.3 percent. suggests overall job increases of about 2.2
percent above 2012. This rate is less than
In Figure 1, financial activities have been what is expected for total job growth in
divided into six sub-industry categories, Utah, which should increase from 3.3 to
with the percentage of industry employment 4.0 percent in the coming year. Total 2013
displayed for each category. Not surprisingly, financial activities employment will likely
the activities that grew the most from 2002 average about 71,000, with the largest
to 2007 during the housing boom were increases occurring within securities/trusts/
real estate and related businesses, which other finance and in real estate.
8 Winter 2012/2013

9. Figure 1
Share of Total Utah Financial Activities by Industry Group:
2002, 2007 and 2012 Estimate
Figure 1–Share of Total Utah Financial Activities by Industry Group:
2002, 2007 and 2012 Estimate
Total Financial Activities Employment for the Selected Years
63,347 74,739 69,435
100% 6.7%
8.4% 7.9%
80% 14.8% 16.9% 17.4%
9.2% 9.3% 11.0%
60% 21.0% 21.8% 21.7%
40%
20% 46.7% 44.1% 43.2%
0%
2002 2007 2012
estimate
Banks/Credit Unions/Other Credit Real Estate
Insurance Rental/Leasing
Securities/Trusts/Other Finance
Figure 2
Figure 2–Utah Financial Activities Employment by Month: 2001 to 2013
Utah Financial Activities Employment by Month: 2001 to 2013
(Seasonally Adjusted)
(Seasonally Adjusted)
60,000
55,000
50,000
45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13
Recession Finance and Insurance Forecast Real Estate, Rental and Leasing Forecast
Source: Utah Department of Workforce Services.
jobs.utah.gov/wi Trendlines 9

10. national news | by john krantz, economist
This New House:
National Housing Market
Staging a Comeback
T
he national housing market,
Signs abound that the country’s economy which was not only a cause of
the Great Recession, but also
is finally on the mend. a victim, has finally started to show
some improvement. The U.S. Census
Bureau reports that new residential
sales were up 27 percent in September
2012 as compared to one year ago,
and new residential construction
housing starts were up 42 percent
in October. These positive signs are
providing evidence that the country’s
economy is finally on the mend.
A healthy national housing market is
of critical importance to the overall
health of the national economy.
When high demand for housing
stimulates residential investment,
jobs are created throughout a large
number of industries. Residential
investment directly creates jobs
within the financial, manufacturing,
retail trade and construction sectors,
to name just the more important
ones. When businesses in these
industries expand, they create
additional demand for the products
of their suppliers, thereby indirectly
creating more jobs in an even larger
number of industries. As new workers
spend their paychecks, the economy
receives yet another boost.
The relationships between residential
investment, residential construction
and recessions are illustrated in Fig-
ure 1. When residential investment
10 Winter 2012/2013

11. Figure 1: Residential Investment,
Residential Building
Figure 1. Residential Investment, Residential Building
Employment and Recessions in thein the U.S.
Employment and Recessions U.S.
1,600 120
Residential Investment (Quantity Index, 2005=100)
Residential Building Employment (in thousands)
1,400 100
1,200 80
begins to decline, a recession typically 1,000 60
follows soon afterward. Furthermore,
the growth of residential investment
800 40
after a recession is an important mech-
anism by which the vitality of the
economy is restored. While residential 600 20
investment creates jobs across a wide
array of industries, it is the creation 400 0
of construction jobs that is of partic- 1985 1990 1995 2000 2005 2010 2012
ular importance. Included in Figure
1 is residential building construction Recessions Residential Building Construction Employment Residential Investment
employment (NAICS 2361), which
accounts for roughly one third of all Sources: Bureau of Economic Analysis; Bureau of Labor Statistics;
residential construction employment. National Bureau of Economic Research.
As the figure makes clear, residential
investment essentially determines the
level of residential construction jobs.
FannieMae is projecting that new
single-family homes will sell at an Figure 2: Annual Rate of New Single-Family
annual rate of 492,000 by the end
of 2013, which represents a 65 per-
Home Sales in the U.S.
Annual Rate of New Single-Family Home Sales (in thousands)
cent increase in sales as compared 1,400
to the fourth quarter of 2011 (see
Figure 2). Even though this signi- 1,200
fies a substantial improvement, the
rate is still far below the peak of 1,000
nearly 1.3 million new home sales
reached in 2005. Nevertheless, the 800
projected growth in new home
sales is good news for residential 600
492,000
construction employment. As the
housing market continues to gain 400
traction, the consequent expan-
sion of construction employment 200
should go a long way toward lift-
ing the national economy out of its 0
doldrums. 2000 2002 2004 2006 2008 2010 2012 2013
Seasonally Adjusted Annual Rate Forecast from 2012-Q4 to 2013-Q4
Sources: U.S. Census Bureau; FannieMae Economic and Housing Outlook.
:
jobs.utah.gov/wi Trendlines 11

12. the outlook | by jim robson, economist
Construction
Jobs Rebounding
The momentum in the
housing market is forecasted
to continue this next year.
O
f all industries in Utah, construction took the falling 2,365 below numbers recorded in 2003. During
hardest hit from the Great Recession of 2008/2009. 2011, construction employment stayed at virtually the
Undoubtedly this was due to the unprecedented same levels as in 2010, averaging just above 65,000 jobs.
housing bubble that developed from 2004 to 2006 as a
consequence of large excess housing construction, speculative Another way to look at construction jobs over this housing
purchases, overvaluation and huge accumulations of debt boom and bust cycle is to divide employment among
obligations. three major types of construction firms: (1) residential
building and specialty trade contractors, (2) nonresidential
A run-up of construction employment in Utah began building and specialty trade contractors and (3) heavy and
after 2003, which was the low point for construction civil engineering construction. Employment levels for
jobs after the “dot-com” recession of 2001. Employment firms classified among these three categories are detailed
increased rapidly over the next four years, reaching its in Figure 2. The housing boom and bust cycle that began
zenith in 2007 when average annual employment stood after 2003 and ended in 2011 is particularly evident
at 103,450, an increase of almost 36,000 jobs, or 53.1 among construction firms and contractors involved in
percent (see Figure 1). In 2008 the major housing bubble residential construction activities. In 2000, total jobs in
that had developed during the previous four years burst. residential activities were 30,828 and grew to a peak level
By September the financial system fell into disarray, credit of 57,155 in 2007. Residential job losses in the housing
was unavailable and businesses in virtually all industries bust reduced jobs by more than one half to 28,032, or
were shedding jobs. about 2,800 fewer than in 2000.
In Utah, construction jobs were declining rapidly in 2008 Finally, in 2012 construction employment was on the
and 2009. The Great Recession officially ended in July rebound. The recovery took hold in housing during 2012,
2009, but many industries like construction continued with single family housing permits increasing off the
shedding jobs, finally hitting bottom in 2010. Utah bottom levels recorded since 2008. Along the Wasatch
construction employment averaged 65,233 in 2010, Front this past year, home prices and sales have shown year-
12 Winter 2012/2013

13. Figure 1: Figure 1
Utah Annual Average Construction Payroll Jobs: 2000 to 2013
Utah Annual Average Construction Payroll Jobs • 2000–2013
120,000
over increases as housing demand
has picked up and inventories have
dropped. Residential construction 100,000
jobs reflect the improving housing
market. Residential housing related
80,000 forecast
employment in 2012 averaged estimate
31,800, or about 3,800 more jobs and
13.5 percent above 2011. 60,000
Given the exceptionally low mortgage
40,000
interest rates and improving overall
labor market in Utah, the momentum
in residential activity is forecast to 20,000
continue next year with 2013 jobs
increasing by 3,600 on average,
0
or a gain of 11.3 percent. Modest 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
nonresidential construction job gains
are also expected in 2013 and heavy/
civil engineering construction should Source: Utah Department of Workforce Services.
maintain current employment levels. Figure 2
Figure 2:
Utah Annual Average Construction Payroll Jobs by Type:
After four difficult years, construc-
tion jobs, particularly those related Utah Annual Average Construction Payroll Jobs
2000 to 2013
to residential construction, showed by Type • 2000–2013
substantial improvement in 2012.
120,000
Expanding housing activities are add-
ing to the overall economic vitality
in Utah. 100,000 11,244
9,456
10,256
80,000
35,051
8,204
33,165
9,055 8,694 7,703 9,570
8,836 9,517
34,984
8,333 7,395
29,414
Single family housing 60,000 9,393 9,494
26,916
29,446
31,687
32,422
26,908
29,824
28,694
28,090
27,583
27,640
permits increased off the 40,000
57,155
52,542
44,067
45,229
35,394
38,010
33,285
31,810
bottom levels recorded 20,000
31,240
31,832
30,828
31,411
28,246
28,032
since 2008. 0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
estimate forecast
Heavy and Civil Engineering Construction
Nonresidential Building & Specialty Trade Contractors
Residential Building & Specialty Trade Contractors
Source: Utah Department of Workforce Services.
jobs.utah.gov/wi Trendlines 13

14. what's happening | by eric martinson, economist
THIS
At 5.2 percent, Utah
currently enjoys
the sixth-lowest
unemployment rate
in the country.
Oil and gas in the Uintah Basin has been driving much of this recent growth.
A
t 5.2 percent, Utah currently enjoys the sixth-low- which employment declined markedly for several quarters.
est unemployment rate in the country. This is a January 2010 marks a turnaround for both national- and
3.1 percentage-point drop from the recession high state-level mining employment, having exceeded their
unemployment rate of 8.3 percent. Relative to all other pre-recession employment highs. Few other industries at
states in the country, this turnaround is pretty impressive. either local or national levels can make the same claim.
So, just what is happening in Utah’s economy? From an
industry standpoint, Utah has been experiencing robust Figure 2 digs deeper into Utah’s mining industry
job growth in several private sector industries, including according to region and provides both historical and
professional business services, wholesale trade, and trans- projected employment trends. Once again, the data are
portation and warehousing. Although it accounted for seasonally adjusted. The bulk of employment in Utah’s
roughly 1 percent of total nonfarm employment in the mining industry falls within three different regions and
state of Utah (second smallest industry sector in terms of specific activities: Salt Lake County is comprised mostly of
employment), the mining industry in 2011 had almost mineral and quarry mining; the Uintah Basin (Duchesne
triple the growth rate of the second-fastest growing indus- and Uintah counties) is mostly comprised of oil and gas
try (professional business services), with an exceptional mining; Castle Country (Carbon and Emery counties) is
11.7 percent year-over-year employment growth. Oil and almost entirely comprised of coal mining. There are a
gas in the Uintah Basin has been driving much of this re- couple of things that immediately jump out in Figure 2.
cent growth. The two figures provided offer deeper insight Oil and gas in Uintah Basin has experienced a tremendous
into Utah’s mining trends over the last two decades. boom in employment. Despite the drop resulting from
the Great Recession, the employment trend here has
As Figure 1 illustrates, Utah’s mining trends tend to move exceeded its pre-recession level. The same can also be said
with the national mining trends; both are seasonally for mining in Salt Lake County. On the other hand, coal
adjusted to provide a clearer perspective. Mining mining has fallen since the Great Recession and continues
experienced a surge in employment leading up to the to fall. The historical series for each of these regional
Great Recession at both the state and national levels, after industries results in the projections shown for each
14 Winter 2012/2013

15. Seasonally Adjusted
Figure 1: State of Utah & National Mining Employment
Figure 1: State of Utahto JuneNational Mining Employment
January 1990 and 2012 -
January 1990 to June 2012 • Seasonally Adjusted
14,000 900
National Mining Employment (Thousands)
Mining Employment in Utah
12,000 800
700
10,000
National 600
8,000 500
Utah
6,000 400
300
4,000
200
2,000 100
Recessions
0 0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Figure 2: Regional Mining Employment: Historic and Projected
region: increasing employment in Figure 2: Regional Mining Employment: Historic and Projected Series
Series
the Uintah Basin and in Salt Lake
County and a decreasing trend
January 1990 to to 2013 -•Seasonally Adjusted
January 1990 2013 Seasonally Adjusted
in Castle Country. Interestingly,
it can be argued that the natural 6,000
gas industry is putting pressure on Recessions
coal as a competing energy input,
as low natural gas prices help to
5,000
suppress the demand for coal.
4,000
Although mining is responsible Uintah Basin
for a minor share of total private (Oil and
sector employment in Utah, one Gas) Projected
3,000 Salt Lake County
cannot help but notice the tre- (Mineral and Quarrying)
mendous growth occurring in this
industry, which in turn provides 2,000
boosts in employment within oth-
er sectors such as heavy construc- Castle
Country
tion and trucking. Furthermore, if 1,000 (Coal)
domestic energy costs such as nat-
ural gas can continue to remain
0
low, this may eventually help to
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
solidify the return of thousands
of manufacturing jobs in the state
and nationwide. Source: Department of Workforce Services; U.S. BLS.
jobs.utah.gov/wi Trendlines 15

16. economic insight | by natalie torosyan, economist
Manufacturing
Employment in Utah
Improving
Although many jobs were lost during the recession,
manufacturing is expected to grow in 2013.
A
fter suffering two recessions result- average. High location quotients imply
ing in decreased employment since that food manufacturing and computer/
2000, Utah’s manufacturing industry electronic product manufacturing are
has improved since 2010 and is projected export-oriented industries with more of
to continue its growth into 2013. Manu- their products being consumed outside of
facturing employment peaked in 2007, but Utah. In fact, these subsectors produce the
the recession led to three years of declining state’s second and fourth largest exports
employment. The 2013 growth rate from to the U.S. in terms of value, electronic
2012 is forecasted to be 0.9 percent, placing integrated circuits and food preparations,
employment at 90.6 percent of the 2007 respectively, according to the U.S. Depart-
peak. As Figure 1 shows, turnaround from ment of Commerce.
the most recent recession has been slower
than the relatively quick recovery earlier Characteristics of primary metal manufac-
in the decade. turing, another subsector, exhibit an inter-
esting dichotomy between value of exports
The largest share of Utah manufac- and employment concentration. Products
turing employment is in miscella- from this subsector, particularly gold, are
neous manufacturing which includes Utah’s top export in terms of value, total-
production of medical equipment and ing 62 percent of all export value, as reported
supplies, jewelry, sporting goods, toys, by the U.S. Department of Commerce. But
office supplies and other products that its employment claims only a small pro-
cannot readily be classified in specific sub- portion, 3.8 percent, of all manufacturing
sectors in manufacturing (Figure 2). Other employment. Since the export is measured
top subsectors in terms of manufacturing in dollar value, and not volume, this rela-
employment share in Utah are food manu- tionship of relatively few jobs producing
facturing and computer/electronic product large amounts of value emphasizes the
manufacturing. Compared to the national high price of gold.
average, these two subsectors have a high
concentration of employment in the state, Manufacturing experienced large job
revealed through an analysis of location losses during the most recent recession,
quotients. These quotients measure the but it has been steadily expanding
rate of concentration of an industry’s employment and is expected to continue
employment in Utah compared to the U.S. to grow through 2013.
16 Winter 2012/2013

17. Figure 1: Total Manufacturing Employment and Forecast in Utah
Seasonally Adjusted
130,000
125,000
120,000 Employment
115,000
110,000 Forecast
105,000
100,000
95,000
e=estimate f= forecast
90,000
1990
1991
1992
1993
1995
1996
1997
1998
1999
2000
2001
2002
2003
2005
2006
2007
2008
2009
2010
2011
1994
2004
2012e
2013f
Figure 2: Employment by Industry Sector
Industry Sector Share of Manufacturing Employment
Miscellaneous Manufacturing 13.8%
Food Manufacturing 13.2%
Computer and Electronic Product Manufacturing 12.6%
Fabricated Metal Product Manufacturing 10.4%
Transportation Equipment Manufacturing 9.6%
Chemical Manufacturing 6.7%
Machinery Manufacturing 4.8%
Printing and Related Support Activities 4.3%
Furniture and Related Product Manufacturing 4.0%
Nonmetallic Mineral Product Manufacturing 3.9%
Primary Metal Manufacturing 3.8%
Plastics and Rubber Products Manufacturing 3.7%
Paper Manufacturing 2.4%
Wood Product Manufacturing 1.4%
Electrical Equipment and Appliances 1.3%
Apparel Manufacturing 1.1%
Petroleum and Coal Products Manufacturing 1.1%
Textile Product Mills 0.6%
Beverage and Tobacco Product Manufacturing 0.6%
Textile Mills 0.4%
Leather and Allied Product Manufacturing 0.1%
Source: Utah Department of Workforce Services.
jobs.utah.gov/wi Trendlines 17

18. fyi | by lecia parks langston, economist
Industry Clusters
the North American Industry Classification System
Or a story of apples and oranges
&
T
he North American Indus- and associated institutions in a particular
try Classification System field or industry. The theory is that
represents a collaborative collaboration among these organizations
effort between the United States, Can- will provide a sustainable, competitive
ada and Mexico to commonly classify advantage for an area.
industries. Here in the U.S. it replaced
the very outdated Standard Industri- For example, the Utah Governor’s Office
al Classification system more than of Economic Development has identified
a decade ago. NAICS categorizes several targeted economic clusters where
each business or establishment into it seeks to serve “as a catalyst to align
a detailed industry based on the necessary resources and policies that
production processes it uses. If you contribute” to the success of these clusters.
regularly read our publications, you’ll These targeted clusters include aerospace/
be familiar with some of the “supersec- aviation, defense/homeland security,
tor” NAICS groupings, such as construc- life sciences, energy/natural resources,
tion or leisure/hospitality services. Here financial services, software development/
at the Department of Workforce Services, IT and outdoor products/recreation.
economists analyze employment data
using NAICS simply because that is how The Apples and Oranges
U.S. detailed statistical information is col-
lected and classified by federal directive. Analogy
Why the talk about apples and
Industry NAICS is an orderly, detailed and
well thought-out system. The NAICS
oranges in the same breath as industry
classification? Both the NAICS structure
structure includes two- through six-digit and the economic/industry cluster
clusters are classifications, offering five levels of system embody ways of organizing
detail. The more digits included in the and classifying industries. Both are
the fodder code, the finer the level of detail. The metaphorically fruit.
federal government regularly adapts the
of economic NAICS coding system to reflect changes
in the nature of the economy.
Yet, these two systems are very different.
NAICS was designed as a statistical
development While NAICS provides structure for data
method of organizing production activity
for statistical agencies. Think of this
users, industry or economic clusters are structure as apples. However, because
tactics. the fodder of economic development industry clusters represent a strategic
tactics. Typically, industry clusters are rather than a statistical method of
defined as a geographic concentration classifying industries, they often group
of interconnected businesses, suppliers establishments from diverse NAICS codes
18 Winter 2012/2013

19. Energy Industry Cluster Example
Six-Digit NAICS Industries
NAICS Two- and Four-
Digit Industries
Bituminous Coal
Mining Underground
Coal Mining Bituminous Mining
Coal and Nonmetallic Support
Metal Ore Mining
Lignite Surface Mineral Activities of Oil
Nometallic Mineral Mining Mining Mining and
and Quarrying and Gas
Quarrying Operations
Oil and Gas Extraction
Drilling Oil
Support Activities Anthracite Natural Gas
and Gas
for Mining Mining Distribution
Uranium- Wells
Support
Utilities Radium- Petroleum Activities
Vanadium Refineries
Power Generation Ore Mining for Coal
and Supply Mining
Natural Gas Distribution Natural Gas Hydroelectric Nuclear
Liquid Power Electric
Crude Extraction Generation
Manufacturing Petroleum
Power
Pipeline Fossil Fuel Generation
Petroleum and and Natural
Coal Products Transportation of Electric Power
Manufacturing Gas Crude Oil Generation
Extraction
Pipeline Electric
Transportation Transportation of Power
Other
Electric
Pipeline Transportation Natural Gas Distribution
of Crude Oil Refined Power
Petroleum Electric Bulk Generation
Product Power
Pipeline Transmission
Transport and Control
Source: Utah Department of Workforce Services.
into one cluster. Think of industry clusters as oranges. the world as they struggle to produce and track economic
Again, both systems classify industries, just differently. information for industry clusters. Also, understand that
The graphic provides an example of how an industry information produced for these clusters may be difficult
cluster (energy) may draw from many different NAICS to reproduce for other entities because of the confidential
industries. For example, the energy cluster draws from nature of the data at the detailed NAICS level.
mining (all blue cells), utilities (green), manufacturing
(purple) and transportation (orange).
Determining exactly which NAICS industries should For more information, see
be included in an industry cluster is no easy task since
there’s no established methodology. In addition, often at business.utah.gov and
even the most detailed level, only a portion of the data
for a particular NAICS industry should be included in a
census.gov/eos/www/naics/
certain economic cluster. So, forgive the data keepers of
jobs.utah.gov/wi Trendlines 19

20. the outskirts | by lecia parks langston, economist
I n many counties, the leisure/
hospitality services industries
showed the first signs of economic
awakening as the business-cycle recovery
began. Close-to-home vacations and a
Forecasting Leisure/Hospitality little eating-out proved some of the first
additional expenditures consumers were
Services Employment
willing to make. On the other hand, in
some of Utah’s off-the-Wasatch-Front
counties, this industry continues to
contract. What do economists expect for
the leisure/hospitality industry in the less
urban areas during 2013?
Leisure/hospitality services industry
employment is often used as a proxy for
tourism-related jobs. This large sector
includes a wide range of businesses
providing entertainment, recreational
activities, accommodations and food
services. Obviously, along with tourists,
the industry serves the demand of local
customers as well. See Figure 1 for a
definition of each particular area.
20 Winter 2012/2013

21. 24.8%
How Dependent Are They?
The level of leisure/hospitality services 24.8%
employment comparative to other areas 15.8%
suggests the dependency of a particular
region on tourism-related jobs. For
example, on average in Utah, roughly 9
percent of jobs in 2011 were categorized
in the leisure/hospitality services 9.7%
industry. However, the Southeast portion
9.4%
of Utah (Grand and San Juan counties), 7.9% 7.7% 15.8% 6.9%
with its abundance of recreation and
Castle Country
state/national parks, shows almost one
Uintah Basin
Southwest
Bear River
Southeast
fourth of employment in this industry. Statewide
Central
Off-the-front areas show a wide assort-
ment of leisure/hospitality services 9.4% 9.7%
dependence. Three areas (Bear River, 7.9% 7.7%
Castle Country and the Uintah Basin) 6.9%
show lower-than-average leisure/hospi- Note: Bear River area consists of Box Elder, Cache and Rich counties. Castle
tality services employment shares. On
Country includes Carbon and Emery counties. Central is comprised of Millard,
Piute, Sanpete, Sevier and Wayne counties. Southeast is made up of Grand
4.5%
the other end of the scale, both South- and San Juan counties. Southwest includes Beaver, Garfield, Iron, Kane and
east and Southwest regions show a sig- Washington counties. The Unitah Basin is comprised of Daggett, Duchesne and
nificantly higher percentage of jobs in Uintah counties. Wasatch Front counties (Weber, Davis, Morgan, Salt Lake
this sector. Tooele, Summit, Wasatch, Utah and Juab) are not shown.
What’s Ahead? 2.3%
Current and projected growth in leisure/ 4.5%
hospitality services jobs tends to mirror
the overall performance of an area’s 0.8%
economy. This suggests that local 0.5%
consumption plays a strong role in an
area’s expansion in leisure/hospitality
jobs. Of course in most areas, a high 2.3%
percentage of food services sales do -0.2%
Uintah Basin
Southwest
come from local residents.
Southeast
The strongest leisure/hospitality services 0.8%
growth is expected in the Uintah Basin
0.5%
in 2013. This 5-percent expansion will
be heavily dependent on a continuing
Central
Bear River
-0.2%
Castle Country
boom in the oil and gas fields. The
Southwest should show the next highest
level (2 percent) of leisure/hospitality -3.8%
services gains. Rather slow expansion
is anticipated for both Bear River (0.5
percent) and Central regions (0.8 For more information about Utah’s
percent). Finally, the contracting trends off-the-front counties, visit
currently experienced in Castle Country
(down 4 percent) and Southeast areas
jobs.utah.gov/countyinfo
(down 0.2 percent) ought to moderate -3.8%
somewhat but not sufficiently to
actually show growth. Source: Utah Department of Workforce Services.
jobs.utah.gov/wi Trendlines 21

22. occupations | by nate talley, economist
Roustabout
Motorman
Roughneck
Worm
M
otorman. Roughneck. Worm. Those colloquial In Utah, the Uintah Basin holds 78 percent of the state’s
terms are sometimes used to describe workers oil and gas extraction employment, and, by extension,
who perform manual labor in oil fields. Sound the majority of the state’s roustabouts. As of May 2011,
appealing? Thankfully, the Standard Occupational there were an estimated 1,570 roustabouts in Utah at a
Classification (SOC) system provides a structure under which median wage of $17.09 an hour. An employment level
common job duties are grouped and formal occupational of 1,570 may not seem to represent an overwhelming
titles are assigned. Under SOC, someone who assembles demand for roustabouts, but consider that the location
and repairs oil field equipment is called a Roustabout. quotient for this occupation is 3.35. Location quotients
measure the concentration of occupational employment
Roustabouts’ job duties are actually somewhat wide- within one area compared to another. In this case, a
ranging beyond the assembly and repair of oil field location quotient of 3.35 for roustabouts in Utah means
equipment. While they spend much of their time bolting that relative to our employment base, Utah employs
together platforms, assembling pump parts and tightening roustabouts at a rate that is over three times greater than
pipes, they may also be responsible for guiding mobile the national rate.
equipment such as cranes and bulldozers, checking
safety harnesses, digging ditches and cleaning up spilled On the other hand, our high rate of roustabout employment
oil. Naturally, roustabouts can expect to perform these is partially attributable to the fact that that not all states
tasks outdoors and in all weather conditions. The work house oil extraction activities. Further, economic factors
schedule for this occupation tends to be aligned with the exogenous to Utah affect the demand for roustabouts by
drilling schedule of the respective oil rig, which means it influencing the price of oil and alerting the quantities
is fairly common for roustabouts to work nontraditional at which oil extraction output is most profitable. And
schedules such as seven days on and seven days off, or since these factors tend to be variable, it follows that the
shifts longer than eight hours. Consequently, part-time demand for roustabouts is also susceptible to variability.
opportunities can be hard to come by. The Bureau of Nevertheless, Utah roustabout employment is expected to
Labor Statistics estimates that entry into this occupation grow at a faster-than-average rate in both the short and
is relatively accessible, as stringent education or work long term.
experience requirements are rare. However, some
employers do prefer roustabout candidates to have some If you're looking for glamour, working as a roustabout is
form of applied technology training where they acquired probably not right for you. But far from being a "worm,"
basic skills in the areas of mechanics, welding and heavy this occupation offers adventure, physical challenges, low
equipment operation, among others. barriers to entry and a promising employment outlook.
22 Winter 2012/2013

23. If you’re looking for glamour,
working as a roustabout is probably
not right for you. But far from being a
“worm,” this occupation offers adventure,
physical challenges, low barriers to entry
and a promising employment outlook.
Labor Statistics for Roustabouts in Utah
Median Hourly Projected Annual Growth Projected Annual Growth Location
Employment Wage Rate through 2013 Rate through 2020 Quotient
1,570 $17.09 9.3% 2.8% 3.35
Source: Utah Department of Workforce Services and Bureau of Labor Statistics, (2012).
jobs.utah.gov/wi Trendlines 23